Here's How To Get Fast Cash For Your Business... Without Loans - Without Debt!!

Yes! Believe it or not, you can get cash for your business without going into debt.

It's true - you can literally get cash for your business just about anytime you want. There are hundreds of factoring companies that are looking to help you. But, not all of them are created equal.

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Memphis Factoring Companies

New to Factoring?

For those who aren't familiar with factoring, it is basically a fast way to get cash to run your business.

Factoring is Not a Loan

When you send your customers an invoice, they usually have 30 days to pay you back. Factoring companies will give you the bulk of the cash up front, sometimes within 24 hours, and collect the payments from your customers themselves. Once the invoices are paid in full, you’ll get the balance left over, minus a small fee.

Factoring Doesn't Require Debt

So how do you go about choosing the best factoring company?

Not all of them are created equal. Not all of them will give you the same level of service you need to help grow your business.

Everyone claims they have the simplest rate structure in the industry, no long-term contracts, same day funding, no up-front fees, no monthly minimums or maximums, etc., etc., etc.

We also offer these same benefits, but we GO THE EXTRA MILE FOR YOU that other factoring companies don’t.

Here’s Why We Are The Factoring Company You Need For Your Memphis Business

No other factoring company matches our level of superior service and offerings.

Financially Strong

We have been in business since 1979, are privately held, and have a proven track record of being financially strong. We have survived many economic downturns and in doing so, can help you through any difficult times you might encounter. We won’t go out of business when the times get tough, like some other factoring companies regretfully have in the past.

Part of a Vast Network

Every factoring company has a preference for size, industry, and risk. It’s impossible for you to know which company is the best fit for you. By contacting us, we can save you a tremendous amount of time by helping you find the best match for your business - whether it’s with us or another company.

We have a vast network of industry colleagues that we’ve built over 20+ years in the business. So, when you take the time to explain your needs to us, we can be the “one stop shop” to help you find exactly what you’re looking for.

No Minimum

Most factoring companies will allow you to pick & choose customers to factor, however they usually have a minimum amount before they’ll work with you. With us, you can pick & choose what to factor on an invoice by invoice basis with no minimum.

Our factoring agreement is like carrying a credit card in your pocket. You carry it to use when you need it but don’t sign an agreement which will force you into factoring when you don’t need it.

Transparent Fees

Most factoring companies are not upfront about their fees. We are different. We are totally transparent about our fees. When you apply, you are provided a transparent, no obligation rate proposal with the fee for your company.

Our typical contract term is 90 days and we offer price breaks for extended term contracts as well as volume discounts. Optional services include $7/ACH for next-day funds sent electronically to your bank account or $12/wire for same-day funds. Invoices can be scanned and electronically uploaded directly to our secure server for $9/batch. In instances when original invoices are required, we offer discounted rates with Federal Express to submit your invoices.

That’s it! See which other factoring company, if any, will be totally up front with their fees before they try and get your business.

Higher Advance Rates

An “advance” rate is the percent of the invoice face value that you’ll receive upfront. Industry average advance rates are 70-90% of the face value of the invoice. So, for example, if your customer owes you $1,000, you should expect to receive an advance payment of $700 to $900 to your account. Our typical advance rates are higher than average - at 85-97% depending on industry and payment track record.

Personalized Solutions

We are not beholden to Wall Street investor money. We are a privately held company and don’t answer to investors or boards. We are like-minded entrepreneurs who understand what it takes to run a business. We take the time to hear your story, learn your struggles, and put together a solution for you rather than relying on an algorithm to determine your company’s value. Who do you want to rely on as a cash flow partner to fund your business?

Dedicated Account Administrators

Many factoring companies have either a lot of employee turnover, a complex voice mail system that you get lost in or operate call centers where you talk with a new representative every time you call in. We offer dedicated account administrators to be your point of contact – who knows your business intimately, and can help you in ways others just can’t.

Industry Veterans

We have been in business since 1979 and have staff who are dedicated to working in this industry as a career. We are veterans in this industry and can provide additional business guidance and resources as needed.

Our Business is Your Business

We establish a mutual risk tolerance to avoid putting you in the position to ever have to buy back an invoice. We also keep track of each invoice and follow them like your own credit and collections department would. Once they hit the payment date we place friendly reminder calls and/or emails on your behalf and keep notes as to when it is scheduled to be paid, and send copies if needed until payment is received.

Payment Trend Alerts

You will have access to online aging reports and your dedicated account administrator is kept in the loop and given advance notice of any collection issues so there are no surprises.

Up-to-Date Customer Credit History

You get direct online access to your customer’s business credit reports, or you can call and speak with your account administrator – your choice. Stay ahead of negative payment trends. This is critical to running your business and filling your next order.

Leading Edge Technology

We make strides to incorporate the latest technology to expedite the funding process, such as electronic submission of invoices, online reports, online credit checking and other emerging methods to streamline the process and reduce overhead, which means lower rates for you. Most other companies don’t even come close.

Financially Strong

We have been in business since 1979, are privately held, and have a proven track record of being financially strong. We have survived many economic downturns and in doing so, can help you through any difficult times you might encounter. We won’t go out of business when the times get tough, like some other factoring companies regretfully have in the past.

Part of a Vast Network

Every factoring company has a preference for size, industry, and risk. It’s impossible for you to know which company is the best fit for you. By contacting us, we can save you a tremendous amount of time by helping you find the best match for your business - whether it’s with us or another company.

We have a vast network of industry colleagues that we’ve built over 20+ years in the business. So, when you take the time to explain your needs to us, we can be the “one stop shop” to help you find exactly what you’re looking for.

No Minimum

Most factoring companies will allow you to pick & choose customers to factor, however they usually have a minimum amount before they’ll work with you. With us, you can pick & choose what to factor on an invoice by invoice basis with no minimum.

Our factoring agreement is like carrying a credit card in your pocket. You carry it to use when you need it but don’t sign an agreement which will force you into factoring when you don’t need it.

Transparent Fees

Most factoring companies are not upfront about their fees. We are different. We are totally transparent about our fees. When you apply, you are provided a transparent, no obligation rate proposal with the fee for your company.

Our typical contract term is 90 days and we offer price breaks for extended term contracts as well as volume discounts. Optional services include $7/ACH for next-day funds sent electronically to your bank account or $12/wire for same-day funds. Invoices can be scanned and electronically uploaded directly to our secure server for $9/batch. In instances when original invoices are required, we offer discounted rates with Federal Express to submit your invoices.

That’s it! See which other factoring company, if any, will be totally up front with their fees before they try and get your business.

Higher Advance Rates

An “advance” rate is the percent of the invoice face value that you’ll receive upfront. Industry average advance rates are 70-90% of the face value of the invoice. So, for example, if your customer owes you $1,000, you should expect to receive an advance payment of $700 to $900 to your account. Our typical advance rates are higher than average - at 85-97% depending on industry and payment track record.

Personalized Solutions

We are not beholden to Wall Street investor money. We are a privately held company and don’t answer to investors or boards. We are like-minded entrepreneurs who understand what it takes to run a business. We take the time to hear your story, learn your struggles, and put together a solution for you rather than relying on an algorithm to determine your company’s value. Who do you want to rely on as a cash flow partner to fund your business?

Dedicated Account Administrators

Many factoring companies have either a lot of employee turnover, a complex voice mail system that you get lost in or operate call centers where you talk with a new representative every time you call in. We offer dedicated account administrators to be your point of contact – who knows your business intimately, and can help you in ways others just can’t.

Industry Veterans

We have been in business since 1979 and have staff who are dedicated to working in this industry as a career. We are veterans in this industry and can provide additional business guidance and resources as needed.

Our Business is Your Business

We establish a mutual risk tolerance to avoid putting you in the position to ever have to buy back an invoice. We also keep track of each invoice and follow them like your own credit and collections department would. Once they hit the payment date we place friendly reminder calls and/or emails on your behalf and keep notes as to when it is scheduled to be paid, and send copies if needed until payment is received.

Payment Trend Alerts

You will have access to online aging reports and your dedicated account administrator is kept in the loop and given advance notice of any collection issues so there are no surprises.

Up-to-Date Customer Credit History

You get direct online access to your customer’s business credit reports, or you can call and speak with your account administrator – your choice. Stay ahead of negative payment trends. This is critical to running your business and filling your next order.

Leading Edge Technology

We make strides to incorporate the latest technology to expedite the funding process, such as electronic submission of invoices, online reports, online credit checking and other emerging methods to streamline the process and reduce overhead, which means lower rates for you. Most other companies don’t even come close.

As you can see, we simply have more to offer you.

Other factoring companies don’t even compare.

And Not All Factoring Companies Can Say This:

More than half of our new business comes through client referrals.

So, Can Your Memphis Company Use Factoring?

Of Course! Companies of all sizes, from small privately-owned companies to large multi-national corporations, use factoring as a way to increase their cash flow. Factoring spans all industries, including trucking, transportation, manufacturing and distribution, textiles, oil and gas, staffing agencies and more.

Companies use the cash generated from factoring to pay for inventory, buy new equipment, add employees, expand operations—basically any expenses related to their business. Factoring allows a company to make quicker decisions and expand at a faster pace.

Unlike a bank loan, factoring has…

No principle or interest to pay over time

No debt to repay

Unlimited funding potential – no caps

Fast funding – no waiting months like at a bank

Approval is based on the strength of your clients, not your credit

Startups are welcome in using funding services

Some of the benefits you receive with factoring are:

Stop worrying about cash flow issues and start spending more time on your business.

No need to make monthly payments to repay a loan.

Receive money in as soon as two to four days – or sooner.

Reduce business costs associated with the collection process.

Win the battle against slow-paying clients.

Get instant credit evaluations for new customers.

Have complete control over your cash flow by deciding which invoices to sell and when.

Enjoy bulk-purchasing discounts or early payment discounts by having extra cash.

Improve your credit rating by having cash on hand to pay bills on time.

You get complete and detailed reports about your accounts receivable portfolio.

Provides cash for your expansion.

Provides cash for your marketing.

Improves your overall financial statement.

Stop worrying about cash flow issues and start spending more time on your business.

No need to make monthly payments to repay a loan.

Receive money in as soon as two to four days – or sooner.

Reduce business costs associated with the collection process.

Win the battle against slow-paying clients.

Get instant credit evaluations for new customers.

Have complete control over your cash flow by deciding which invoices to sell and when.

Enjoy bulk-purchasing discounts or early payment discounts by having extra cash.

Improve your credit rating by having cash on hand to pay bills on time.

You get complete and detailed reports about your accounts receivable portfolio.

Provides cash for your expansion.

Provides cash for your marketing.

Improves your overall financial statement.

Now you know why you can't just go to any factoring company.

You deserve the First Class Service that only we can give you. We Will Fund You Fast! So what are you waiting for? Call us today. We want to give you money!

Call us today and let us help you get the cash you need to operate your Memphis business effectively.

The city's central location has led to much of its business development. Located on the Mississippi River and intersected by five major freight railroads and two Interstate Highways, I 40 and I 55, Memphis is ideally located for commerce in the transportation and shipping industry. A third interstate, I 69, is under construction, and a fourth, I 22, has recently been designated from the former High Priority Corridor X. River barges are unloaded onto trucks and trains. The city is home to Memphis International Airport, the world's second busiest cargo airport (following Hong Kong), which serves as a primary hub for shipping.Memphis is the home of three Fortune 500 companies: , based in Nashville, has a factory in Memphis, near Beale St. and the The Federal Reserve Bank of St. Louis also has a branch in Memphis. , manufacturer of tissue products, operates the largest tissue manufacturing facility under one roof in the Memphis area.

The entertainment and film industries have discovered Memphis in recent years. Several major motion pictures, most of which were recruited and assisted by the , have been filmed in Memphis, was set in Memphis but filmed in Atlanta. The 1992 television movie Memphis, starring Memphis native , who also served as executive producer and writer, was also filmed in Memphis. The city lost , whose production was lured to Georgia, and, a television series on set in Memphis, was lured to Louisiana.

Information for the state of Tennessee

Although Tennessee is now primarily industrial, with most of its people residing in urban areas, many Tennesseans still derive their livelihood from the land. The state's leading crops are cotton, soybeans, and tobacco; cattle, dairy products, and hogs are also principal farm commodities. Tennessee's leading mineral, in dollar value, is stone; zinc ranks second (Tennessee leads the nation in its production). Industry is being continually diversified; the state's leading manufactures are chemicals and related products, foods, electrical machinery, primary metals, automobiles, textiles and apparel, and stone, clay, and glass items.

Aluminum production has been important since World War I. Tennessee has long been a major tourist destination, owing largely to its beautiful scenery. Many lakes were built here by the Tennessee Valley Authority (TVA) and the Army Corps of Engineers. The TVA also developed the Land Between the Lakes, an enormous Kentucky-Tennessee recreation area. Visitors are also drawn by Tennessee's famed music capitals, the country-music mecca of Nashville and the blues and jazz hub of Memphis

HERE IS A QUICK WAY TO SHORE UP YOUR CASH FLOW

Memphis Factoring Companies Articles

"How a Factoring Company Saved This Owner of a Trucking Company Business"

Transportation industry plays a vital role in the economic scene. As people's lives become more and more sophisticated as time goes by, making the most out of the limited resources is the concern of all. Say for example the proper use of land to get optimum profit and convenience or what is known as the zoning. It is defined as the process of planning for land use to allocate certain kinds of structures in certain areas. This method separates the manufacturing sites from the sources of its raw materials, the employees and employers to their respective offices. This made the transportation industry play a vital role in the economic scene. It is a primary necessity for businesses of any size and of any type. It does not just transport raw materials to the manufacturers but also bring finished products into our every door.

Investing in a business which plays a vital role in the current economic scene is a thing that every investor should not think twice about. But business does not work that easy. The big question is, how you are going to survive the most challenging phase of establishing a business - the start. Starting a business requires a capital. If you now have enough money for capital, you can now start your business and since you are investing in a very promising type of business, finding customers is not a problem. The problem is, what if you found bad ones. Even if your customers are also managing a business and expecting cashflow, which does not guarantee that they would pay you up to date because some businesses are just ill-managed. For the business to survive, the most important thing that you would be doing is funding your operational cost - make payrolls, fuel, maintenance - it should rely on cashflow, but since things like mentioned above is very common, some business owners would resort for a loan. But that does not solve the problem of getting your receivables paid on time. As a business owner, you cannot afford the time it takes to collect the receivables, while trying to make your business grow.

Mr. Paul, an owner of a small trucking company experienced the same kinds of problems and shared how he managed to survive. "I just released my head from the stress of how am I going to get my receivables, and focused on making the business grow"¦"

Mr. Paul just got his retirement fee from a big trucking company for almost forty years and was thinking on how to double his money in the shortest time possible. Seeing a small trucking company as a business of great potential and is a business that he knows. When he was still driving a truck, he was fascinated by how much money the company is making. He has also never experienced a delay in his salary. When he decided to invest his retirement fee in establishing a small trucking company, everything was just according to what he expected. He started with a single truck from his home. He started with just a few clients, the ones he knew already and never missed one deadline and kept freight damage as minimal as possible. Because of his outstanding services he started to get referrals and had more work than he can handle. From then, he started to expand, bought more trucks, hired more personnel. Using the knowledge he acquired from the company that he had served for a very long time, and dedication to his work, his little business grew in a rate that he had never imagined. The business is now requiring a more strategic plan and when Mr. Paul thought that everything was going very well, he encountered problems that he failed to foresee.

He had customers that made him wait for weeks or even months before paying. Since his little business is rapidly growing, his operational cost is also growing . This is a problem that he never knew and never observed in his entire career as a driver of a trucking company since he was never in an administration role. He was at the verge of breaking down, his business is losing money, growing too fast, not big enough has to rely cashflow to keep up to his fast growing business. He had to make his payroll, pay his suppliers, maintenance and fill his orders. Mr. Paul thought of going to bank and apply for a loan but was denied. "Maybe because I had a bad personal credit...haha"

Mr. Paul thought of declaring bankruptcy because of the stress that he never imagined he will be handling. He had to think of how to manage his business and at the same time, how will he keep the business alive by thinking of a solution on how is he going to deal with his receivables.

"You know that time, I, I, I just don't know what to do... I felt that as the business kept growing and growing, I become more and more incompetent. Then suddenly, a hero came along... Just at the nick of time. "

Then a close friend of his introduced him to a factoring company and everything turned out just fine. So what is this factoring company then? What does it do? How did it save Mr. Paul's business?

Well, this is how it works, Mr. Paul sells his invoices or receivables to a factoring company at a discount and not in an amount where he can no longer make a profit. The factoring company will then be the one collecting the invoices of Mr. Paul's business from his customers. Say for example, Paul still has 100 dollars to collect from one of his customers. He then sells it to the factoring company at a lesser price, say 90 dollars. The factoring company will now be the one who is going to get the 100 dollars collectible from Paul's customer.

The factoring company immediately gave Mr. Paul the cashflow he needed. He now has instant customer credit checks. He can rest well and likes doing business with companies that pay their bills on time. Save him from the stress of thinking how to deal with his collectibles, thus saving time and money. He can now focus on growing his business and keeping his customers happy. Increase his sales and cashflow.

The Factoring Company not just saved Mr. Paul's start-up business but made it a big company now. It has helped Mr. Paul's business, why don't you let it help yours?

Immediate payment for your invoices help you avoid financial trouble.

Memphis Factoring Companies Articles

Bookkeeping for Freight Brokers and the Most Common Mistakes Businesses Make

A freight broker is either a company or an individual who effects the transportation of goods by pairing up shippers with transportation services. The freight broker is not only responsible for pairing reliable and authorized transportation carriers with shippers, but also organizing the shipping needs for various organizations. Besides matching shippers with carriers, a freight broker is also responsible for ensuring each and every piece of cargo reaches its destination - and in good condition.

In addition to these tasks, freight brokers are also responsible for maintaining accurate bookkeeping records, and those who fail to keep meticulous accounting records are likely to lose money in the long run. In this post we've detailed what we believe are the most common accounting mistakes freight brokers make, and ways in which they can be avoided.No. 1: Attempting to DIY Your Bookkeeping Can Result in Costly Errors

Whether you handle the books yourself or delegate this vitally important job to an unqualified employee or even a family member, DIY bookkeeping is seldom, if ever, a good idea. Yes, initially you'll undoubtedly save some money, but your inexperienced bookkeeper's errors can ultimately become very costly to your business and result in expensive financing terms, increased bond premiums, and other unnecessary costs.

We strongly suggest you employ the services of an experienced bookkeeper who's qualified to deliver accurate accounting records, which will ultimately result in fewer errors and the job being completed quickly and efficiently.

No. 2: Postponing Important Bookkeeping Tasks Due to Heavy Workloads

It's not easy running a business, and anyone who finds themselves in this situation understands only too well just how difficult it can be to find the time to complete day-to-day time-consuming tasks. It's imperative that things like reconciling credit card and bank statements be completed each month because it's only through these reconciliations that errors can be found; plus of course it's how you determine out how much credit or cash you actually have.

As tempting as it may be to postpone these tedious tasks, you must ensure that your credit card and bank statements are reconciled every month, ideally as soon as you receive each statement. Keeping on top of statements means you can quickly identify any lost checks, missing deposits, or fraudulent charges, and be able to handle any discrepancies in a timely manner.

No. 3: Failing to Track Receivables and Invoices

Your business depends on you getting paid, and you won't be paid if you're not regularly and properly accounting for receivables. The lifeblood of your business is cash, which means the success of your business is entirely dependent upon you accounting for receivables. To put it another way, if the period of time between paying your carriers and receiving payment from customers is unnecessarily delayed by poor accounting practices, your business cash flow is going to be very strained.

If you're time-poor and realize you simply don't have time to track and collect invoices, then invoice factoring is the perfect solution for you. For just a small fee your applicable invoices will be purchased by the invoice factoring company, but the best part about invoice factoring is that you receive immediate payment! No longer will you have the time-consuming responsibility of trying to collect payments, thus saving an enormous amount of office time: plus, it leaves you free to take care of your own job, which is handling the day-to-day running of your business.

No. 4: Overlooking Liabilities Can Have Disastrous Results

When a surety inspects your business records to underwrite a bond, one of their first and most important considerations is whether your assets are sufficient to cover your liabilities. It's difficult for inexperienced bookkeepers to understand the full implications of accurate record keeping and sometimes DIY accountants record a liability but once the payment is made they forget to reverse the liability. This is a serious error because it understates net income while overstating liabilities, which makes your business appear less financially stable than it actually is.

The only way to avoid these unnecessary accounting errors is to hire an experienced bookkeeper. It's always handy to have another set of eyes, whether it be a CPA or an owner, to regularly review the balance sheet and check for discrepancies in account balances.

No. 5: Miscategorizing or Creating Unnecessary Expense Categories

All too often we see inexperienced bookkeepers either creating unnecessary expense categories or wrongly categorizing expenditures, either of which can be a huge red flag. Generally, each industry uses a standard set of categories for expenses and failing to follow this set of rules can signal to a surety or loan underwriter that an inexperienced person is handling your books; meaning that they may not be well prepared.

It's really important that your business's accounting software is correctly set up, preferably with the help of an accountant or experienced bookkeeper. Additional expense categories should not be added unless absolutely necessary. If you have any queries about how to classify expenses, don't hesitate to ask for guidance from your qualified accountant or CPA.

No. 6: Submitting Invoices with Insufficient Details

Don't try to save time by skimping on invoice details. Your customers' invoices should have detailed information on each line item; for example, do you invoice per mile, by weight, or by piece? Is the charge a flat fee? If there are additional charges such as fees or reimbursements for fuel, these should be listed as separate line items. The only way to avoid any confusion is to ensure that charges are properly detailed on invoices.

The last thing you want is for your customers to complain about charges they don't recognize on their invoices; and missing information can cause much confusion, resulting in delays in payment. All of these problems can be prevented by ensuring that your invoices have complete, detailed, and accurate information. Don't create unnecessary problems by trying to skimp on invoice details.

No. 7: Not Learning or Understanding the Full Functionality of Your Accounting Software

Getting a business up and running can be very expensive and time-consuming, and many freight brokers simply don't have time to learn how to use their accounting software package to its full capacity. This is not a problem if all your accounting and bookkeeping tasks are being outsourced; however, if you're using the software in any way at all, perhaps even just for entering checks and running reports, we strongly recommend that you learn how to use all functions of your accounting software package.

You can save so much time and have easy access to real-time information on the financial status of your business if you have the right accounting software and you know how to use it correctly. Having this information at your fingertips can help you make the right decisions to grow your business.

Memphis Factoring Companies Articles

How Medical Staffing Helps The Medical Industry

Mary Henderson sat in her office, waiting for the phone to ring. Her job was a busy one, and she had stopped all her calls and shut her door five minutes before the phone conference was set to begin just to get some time for herself. The truth was she was stressed to her breaking point. Her company Med Staff needed to hire three new people to cover the demand of their clients. The problem was, they couldn't. They were short on funds.

Med Staff did temporary medical staffing. They employed LPN's, RN's, and a few others of the same ilk. Companies that needed nursing for a short amount of time paid Med Staff, and the nurses were sent over on short term contracts. Then they came back, and they were sent somewhere else.

A retirement home had contacted Mary two weeks ago, they were undergoing an expansion, and they would need temporary staffing until they could appoint permanent nurses to the shifts. Mary had known she didn't have enough people for this, but she took the contract on anyways, figuring she could hire people. There were always a number of nurses and technicians applying for work at Med Staff, and she knew it wouldn't be a problem to hire a few new people.

There had been a problem though. There simply wasn't enough money in the books to do it. The company was doing fine, but a quick expansion, even as small as three people, simply wasn't going to happen, not without help.

She had gone to the bank for a loan, but they had denied her. It seemed to Mary that the only people who could get loan money from a bank were the people who didn't need to do so. And then she had found something different, a website online about factoring. She had looked the site over, and set up the conference call.

The phone rang, she picked it up. "Hello?"

"Hi, is this Mrs. Henderson?" a cheery woman's voice asked over the phone."

"It is."

"Great! My name is Stacy, I'm going to help you today."

"Okay great." Mary said.

"I'm looking over the form you filled out, it looks like your company temporarily staffs medical professionals?"

"Yes," Mary said. "Nurses mostly."

"Great," Stacy said. "And if you called me, it means you ran into a snag."

"I took a contract to fill five places in an expanding retirement community. I have two people available but needed to hire three more. Unfortunately, we just don't have that kind of money in the books right now. We have a few outstanding invoices yet to be paid, but until they come in, there's nothing I can do."

"Do you know how factoring works?" Stacy asked.

"Not really," Mary admitted.

"Okay, well we don't look at your business credit, we look at your clients' credit. We know they have some time to pay bills, and we're interested to see if they can pay those bills. If they can, we become interested in helping you out, because we think all businesses should have a fair shot to make it, and sometimes things just don't work out."

"This is the first time it hasn't worked out," Mary said. "And it's hard."

"I know. I hear about it every day. The cool thing about my job is I get to help fix it. So what we do, if we feel secure in our ability to help you, is we buy a piece of your accounts receivable. We aren't just loaning you money, we're basically becoming active in your business. That is you get the money you need right now, but we have an assurance that we get our money back, later down the road."

Mary nodded behind her desk, even though the other woman couldn't see her. She had never heard of factoring before she came across the site on the internet, but the way Stacy explained it certainly made sense.

The call continued, with Mary giving the information that Stacy would need. She promised to get back to her within a couple of days, and then they hung up. Mary went on with her work, and a day and a half passed.

Mary was at her desk when he phone rang then. It was Stacy.

"Good news," she said as soon as Mary said hello. Mary couldn't help but smile as Stacy went on. "We're going to be able to help you out."

"You don't know how great it is to hear you say that," Mary said.

"Believe me, I do," Stacy said. "I get to say it more often than not, and I know that we're really helping good people, and good businesses."

"The bank, they couldn't do anything," Mary said, she felt salty tears stinging her eyes as they welled there.

"They aren't built to help people like we are. They just want as much money as they can get. We want money too, because it's a business, but if you don't succeed, we don't succeed, and it's also important to us that we help people."

"So what's next?" Mary asked.

"Well the real answer is I fax some stuff over for you to fill out and sign, but the fun answer is your business gets the help it needs, and you keep going to work each day. Well, not the weekends."

Mary couldn't help but laugh. "Believe me," she said. "I work plenty of weekends."

Stacy laughed as well, and then got the fax number she would need. Once again the women hung up and Mary let out a long breath as she sat back in her chair. She used a tissue to dab the tears from her eyes. She knew everything was going to be okay.

Memphis Factoring Companies Articles

Everything You Need to Know about Invoice Factoring

You've probably heard about invoice factoring, but like many business owners you may not be entirely sure how it works or whether it could help your own business. In this article we'll try to answer all your questions about what invoice factoring is, how it works, and whether it could help you grow your business.The following definition of invoice factoring may sound too good to be true, but let's look anyway! "Invoice factoring is a viable alternative to bank financing and other traditional types of financing, but it's not a debt, and there are no strings attached." For anyone who's approached traditional lending sources for financing and been refused or left hanging for weeks or months, yes, this probably does sound too good to be true, but it's actually not! Invoice factoring can provide the working capital you need to help your business grow and prosper, so read on then decide for yourself.

How Invoice Factoring Works

With invoice factoring you no longer need to wait 60, 90, or even 120 days to receive payment from your customers, because invoice factoring converts these invoices into immediate cash in-hand. It's up to you to determine which invoices, and how many invoices, you wish to factor, following this simple process -

- Once you've been accepted for invoice factoring by your factoring company, you can begin submitting your unpaid invoices. These invoices must be for products that have been delivered or work that's been completed. The process to follow is to fax or email a copy of the invoice directly to the factor, while at the same time invoicing your customer as usual.- Within 24 hours you'll receive a cash advance from your factoring company. Your invoices will be verified by the factor and you'll receive a cash advance of up to 95% of the invoice, which will be paid directly into your bank account.- Now that you've received this cash advance, you continue on with your work while the factoring company works to collect on the invoice on your behalf. Your factor will be highly experienced in collecting on invoices, thus allowing you to do what you do best, which is to continue providing excellent customer service and focusing on other important aspects of growing your business.- It's entirely up to you how many invoices you factor and how many clients you choose for the factoring process. You may decide to factor all your invoices, or it may be that you have one client that's always late in paying and you'd prefer the factoring company to only collect on that one invoice. It's your decision!

The Benefits of Invoice Factoring

The major benefit of invoice factoring is that, as the business owner, you're controlling your cash flow. Of course, there are other advantages of using a factoring company which can help your business grow and prosper.

It's very important to the viability of your business that you work with reliable customers in fact, it's the only way to turn your sales into revenues and to develop a solid payment history. But, we all know just how expensive it can be to run background and credit checks, and this simple exercise can dig deep into your working capital.

No problem! These checks will be provided to you by your invoice factoring company at no additional charge to you, which will provide reassurance that you are in fact working with quality customers. It also means that any issues that may arise can be addressed before they negatively affect your company.

No. 2: Your Factoring Company Can Assist with Credit Building and Repair

Perhaps your business credit is not ideal, but the good news is that you could still qualify for an invoice factoring program. The benefit of invoice factoring for a business with less-than-perfect credit is that, not only will you have available cash to meet your daily operating costs, you'll also be able to rebuild your credit rating by paying down current debt. Factoring companies are also well-equipped to assist start-ups, so if you're just getting your business up-and-running, invoice factoring is the perfect way to maintain regular cash flow.

With invoice factoring, your business can utilize this rejuvenated cash flow to not only save money by offering competitive rates, but you'll now be able to negotiate early pay discounts and other incentives with your suppliers. And, depending on how many invoices you decide to factor, you could eventually qualify for a reduction in rates by receiving a volume discount.

No. 4: Invoice Factoring Provides Steady Cash Flow

In order for any business to grow and prosper it's vitally important to have a steady cash flow. And that's the beauty of invoice factoring: instead of late-paying customers controlling cash flow, the business owner regains control of the working capital. Perhaps you're simply tired of waiting for invoices to be paid, or maybe you're in an industry with seasonal fluctuations; whatever the reason you're struggling with cash flow, invoice factoring can help you regulate and take control of your business once again.

No. 5: Invoice Factoring Allows You to Dream Big Again!

Having a steady business is one thing, but having a growing business is what every business owner dreams of. Now that you've been accepted for invoice factoring and you have a steady cash flow, there are many ways you can use this cash to grow your business.

- You can increase your marketing efforts and get your name out there;

- You can negotiate bigger and better contracts with bigger clients;

- You can invest in technology upgrades;

- You can employ experienced personnel, or provide training programs for existing staff;

- You can upgrade or replace outdated equipment; and

- You can relocate your business or invest in expansion.

No. 6: Invoice Factoring Is Not a Debt to Your Business

It's very important to note that invoice factoring is not a debt, so there will be no more debt added to your balance sheet. In fact, it's exactly the opposite, because invoice factoring provides cash in-hand, so you can pay off old debts. The money is already yours, so there's no money to pay back or interest to add on. All invoice factoring does is get money that's owed to you into your bank account - faster.

I've Never Heard of Invoice Factoring

Many businesses know very little, or nothing at all, about invoice factoring, which is strange because invoice factoring is certainly not new. Perhaps it's because we typically think of bank loans and other traditional types of lending when looking to grow our business; however, factoring goes right back to the Roman Empire. Back then, businessmen, particularly farmers, used factors to grow their business, and in more modern times factoring was used to finance transactions in the clothing and textile industry, helping businesses accept larger purchase orders and pay for raw materials. Today, invoice factoring is used by almost every industry you can think of, like -- Construction

- Transportation

- Medical

- Staffing, HR

- Consulting

- Engineering

- Media and Marketing.

Understanding the Language of Invoice Factoring

Invoice factoring does appear to have its own language, so let's clarify some of the terminology -

- Your customers are known as Account Debtors.

- The report showing the total amount of unpaid receivables in addition to the amount of time they've remained unpaid is known as an Accounts Receivable Ageing Report.

- The two terms Invoice Factoring and Accounts Receivable Factoring can be used interchangeably because they mean the same thing.

- The percentage of the invoice charged by the factor as a fee for advancing funds is known as the Discount Rate.

- When your factor conducts background research to assess potential customers this is known as Due Diligence.

- The cash that's advanced to the business, typically within 24 hours and usually ranging between 80% and 95% of the total invoice amount, is known as the Factoring Advance Rate.

- The third party who connects a business with the right factoring company, to meet their business goals and needs is known as a Factoring Broker.

- The right to maintain possession of property until such time as a debt has been discharged is known as a Lien.

- It can occur that a customer fails to pay their invoice on time, or they may never pay their invoice. Non-Recourse Funding is where the factor assumes full responsibility for funds lost. Because the factoring company accepts this responsibility, non-recourse funding is therefore more expensive.- With Recourse Funding, your business will be required to buy back the receivables if your client fails to pay within the agreed-upon terms.

- The amount of money withheld by the factor until full payment has been received from your customer is known as the Reserve.

- Staffing companies may choose to enter a one-time agreement in order to factor a single invoice. This is known as Spot Factoring.

How Does Invoice Factoring Affect Your Customers?

It's important to point out here that your factoring company is not a collection agency and that factoring is not a bad thing. The aim of your factoring company is to maintain a good working relationship with both you and your customers, which means that your customers will receive great customer service. Both you and your factoring company have one common goal, and that is to ensure the payment process of your invoices is as seamless as possible. See below for how factoring typically works -

- You've decided to start factoring, so the first step is for your Account Manager to verify with your debtors that they are indeed your customers and to inform them of a change of address for remittances.

- Your customers must pay their invoices anyway, so a change of remittance address should not affect them in any way.

- Your account manager is a professional when it comes to collecting on invoices, so they will simply advise your clients that they will be managing your invoices in future and taking over your accounts receivable.

- And that's all there is to it! Nothing should change between you and your customers. They'll still receive an invoice from you; but their payment will now be sent to a new Post Office box. Your Account Manager will always be on hand to resolve any issues that may arise.

How Do I Choose the Right Invoice Factoring Company for My Business?

When you start looking for factoring companies you'll discover that there are many different companies out there, but they're certainly not all the same.

When making comparisons we suggest you consider the following points -

1: Factoring Fees

It's true that factoring fees can be more expensive than traditional bank loans, but sometimes the decision businesses are faced with is to simply have access to some working capital or have no working capital at all. What should you be aware of? You need to know the overall factoring cost, in addition to any smaller (or hidden) fees your factor may charge. These fees might include -

- Account Setup Fees

- Application Costs

- Credit Reports

- Costs to Research Liens

- Money Transfer Fees, or

- Last-Minute Funding.

Choose a factor that you believe you can trust and one that you feel completely comfortable with; because you're also looking for great customer service. Remember also that factors may charge for different things, and there may be hidden fees.

2: You Need Flexibility, so Carefully Check Your Proposed Contract

It's very important that you carefully read the fine print of your contract, prior to signing on the dotted line. It would be so disappointing to sign a factoring contract only to realize that you didn't completely understand the terms and now you're locked into a contract that's not clear on how the factoring company charges or how many invoices you can factor per month - or even worse - that you're now legally bound to this factoring company for the long term. Yes, long-term factoring contracts do exist, but be prepared to pay a lot of money if you try and break the contract. Make sure you know exactly how long you're signing up for, which of your clients are eligible for factoring, and how much per month you can factor.

3: With Invoice Factoring, Communication Is Key

Great customer service is very important with any business, and the most important part of great customer service is good and easy communication. And now we're talking about dealing with a company that's handling your money, so you can see how important good communication is! The last thing you need from a factoring company who's handling your money is being forced to wait for days for someone to respond to your phone call or email communication. Any factoring company you talk to is going to say their communication and customer service is really great - but be very cautious. How well did your potential factoring company respond to your initial queries? Then ask yourself: is that how you'd want them to deal with your customers? Remember there are plenty of factoring companies out there, so if the answer to these questions is not an unequivocal â€˜yes', then find someone else.

4: Look for a Factoring Company That Has Industry Expertise

Yes, there are factoring companies out there that cover general factoring, but ideally, you'll choose someone who specializes in your own industry; someone who has a good working knowledge of the type of business you're running. Once you start looking for the right factoring company for your business you'll see that there are many factoring companies that specialize in specific industries, which means they already know a lot about your business model. And, if they have a lot of expertise, they'll probably be able to offer specific programs that relate to your industry, like fuel cards, or back-office support. These little extras can be just what you need when deciding whether or not to factor your invoices.

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"How a Factoring Company Saved This Owner of a Trucking Company Business"

Transportation industry plays a vital role in the economic scene. As people's lives become more and more sophisticated as time goes by, making the most out of the limited resources is the concern of all. Say for example the proper use of land to get optimum profit and convenience or what is known as the zoning. It is defined as the process of planning for land use to allocate certain kinds of structures in certain areas. This method separates the manufacturing sites from the sources of its raw materials, the employees and employers to their respective offices. This made the transportation industry play a vital role in the economic scene. It is a primary necessity for businesses of any size and of any type. It does not just transport raw materials to the manufacturers but also bring finished products into our every door.

Investing in a business which plays a vital role in the current economic scene is a thing that every investor should not think twice about. But business does not work that easy. The big question is, how you are going to survive the most challenging phase of establishing a business - the start. Starting a business requires a capital. If you now have enough money for capital, you can now start your business and since you are investing in a very promising type of business, finding customers is not a problem. The problem is, what if you found bad ones. Even if your customers are also managing a business and expecting cashflow, which does not guarantee that they would pay you up to date because some businesses are just ill-managed. For the business to survive, the most important thing that you would be doing is funding your operational cost - make payrolls, fuel, maintenance - it should rely on cashflow, but since things like mentioned above is very common, some business owners would resort for a loan. But that does not solve the problem of getting your receivables paid on time. As a business owner, you cannot afford the time it takes to collect the receivables, while trying to make your business grow.

Mr. Paul, an owner of a small trucking company experienced the same kinds of problems and shared how he managed to survive. "I just released my head from the stress of how am I going to get my receivables, and focused on making the business grow"¦"

Mr. Paul just got his retirement fee from a big trucking company for almost forty years and was thinking on how to double his money in the shortest time possible. Seeing a small trucking company as a business of great potential and is a business that he knows. When he was still driving a truck, he was fascinated by how much money the company is making. He has also never experienced a delay in his salary. When he decided to invest his retirement fee in establishing a small trucking company, everything was just according to what he expected. He started with a single truck from his home. He started with just a few clients, the ones he knew already and never missed one deadline and kept freight damage as minimal as possible. Because of his outstanding services he started to get referrals and had more work than he can handle. From then, he started to expand, bought more trucks, hired more personnel. Using the knowledge he acquired from the company that he had served for a very long time, and dedication to his work, his little business grew in a rate that he had never imagined. The business is now requiring a more strategic plan and when Mr. Paul thought that everything was going very well, he encountered problems that he failed to foresee.

He had customers that made him wait for weeks or even months before paying. Since his little business is rapidly growing, his operational cost is also growing . This is a problem that he never knew and never observed in his entire career as a driver of a trucking company since he was never in an administration role. He was at the verge of breaking down, his business is losing money, growing too fast, not big enough has to rely cashflow to keep up to his fast growing business. He had to make his payroll, pay his suppliers, maintenance and fill his orders. Mr. Paul thought of going to bank and apply for a loan but was denied. "Maybe because I had a bad personal credit...haha"

Mr. Paul thought of declaring bankruptcy because of the stress that he never imagined he will be handling. He had to think of how to manage his business and at the same time, how will he keep the business alive by thinking of a solution on how is he going to deal with his receivables.

"You know that time, I, I, I just don't know what to do... I felt that as the business kept growing and growing, I become more and more incompetent. Then suddenly, a hero came along... Just at the nick of time. "

Then a close friend of his introduced him to a factoring company and everything turned out just fine. So what is this factoring company then? What does it do? How did it save Mr. Paul's business?

Well, this is how it works, Mr. Paul sells his invoices or receivables to a factoring company at a discount and not in an amount where he can no longer make a profit. The factoring company will then be the one collecting the invoices of Mr. Paul's business from his customers. Say for example, Paul still has 100 dollars to collect from one of his customers. He then sells it to the factoring company at a lesser price, say 90 dollars. The factoring company will now be the one who is going to get the 100 dollars collectible from Paul's customer.

The factoring company immediately gave Mr. Paul the cashflow he needed. He now has instant customer credit checks. He can rest well and likes doing business with companies that pay their bills on time. Save him from the stress of thinking how to deal with his collectibles, thus saving time and money. He can now focus on growing his business and keeping his customers happy. Increase his sales and cashflow.

The Factoring Company not just saved Mr. Paul's start-up business but made it a big company now. It has helped Mr. Paul's business, why don't you let it help yours?

Memphis Factoring Companies Articles

Healthcare professionals are finding that business loans and commercial lines-of-credit are becoming more difficult to qualify for, so today we're seeing more healthcare professionals looking to medical factoring to alleviate cash flow problems. All types of medical and healthcare practices can benefit greatly by choosing to factor their receivables and thus receive immediate cash payments.

In the past, healthcare has typically been a resilient industry, but today we see this industry facing financial challenges that leave practices struggling to meet their own financial commitments. Cash flow was virtually a non-issue for medical facilities, professionals, and their suppliers, but today with Medicaid, Medicare, and private insurance companies working with strict reimbursement guidelines, professionals are forced to wait much longer than they previously waited to receive payment on their invoices. In addition, complicated documentation and billing requirements are resulting in fewer dollars and longer waiting periods.

Financial Difficulties Experienced by Healthcare Professionals

The above issues are creating serious problems for a large number of medical providers who not only must wait longer to get paid less money, but who are also forced to deal with growing operating expenses, including salaries and other benefits. Operating under these unsure conditions means that the viability of these businesses is being threatened and it's become almost impossible for them to pursue new growth opportunities. Today, a medical practitioner operating a relatively small practice could have receivables of up to $1 million tied up!

Any business that's confronted with cash flow problems will typically look to banks or other lenders for a loan. Offering the business a loan or line-of-credit can certainly be very helpful in the short term, but unfortunately neither of these products are an ideal financing solution because neither will permanently solve the real problem.

A business loan may be ideal for fixed capital purchases, but it's no solution at all for handling recurring business expenses. A line-of-credit can certainly be very helpful, but because it will have a credit limit and a fixed term it won't provide a renewable source of business capital. Once the credit limit has been reached or the term of the line-of-credit expires, the lender may either increase the credit limit or perhaps not renew it at all. It's a sad fact that, today, many healthcare professionals are finding themselves in this unfortunate situation.

Finding the Ideal Medical Financing Solution

The perfect financing solution would be one that's flexible and one that would provide a steady and reliable source of working capital. It would grow with the healthcare business, without the need to re-apply or having to approach a bank for an increase in the credit limit. In short, this perfect financing solution would provide working capital to finance both the current and future growth of the business. So, is there such a solution? Fortunately, yes there is! It's called medical factoring.

Explaining Medical Factoring

Medical factoring is a receivables factoring program designed exclusively for medical invoices. Because factoring medical receivables can be quite challenging, many factoring companies today are specializing only in the healthcare industry. It does require a certain amount of expertise to manage the medical claims process; plus, it becomes even more challenging when many healthcare receivables are either reduced or denied altogether by insurance providers.

What Types of Business Can Use Medical Factoring?

Many business owners are surprised to learn that factoring in general has been around for a long time. Medical service providers, in particular, seem to be completely unaware of the existence of factoring. The truth is that invoice factoring has become one of the most flexible and powerful business financing tools available today.

Many healthcare providers can benefit greatly from choosing medical factoring. Below we've listed just some of the healthcare service providers who can achieve huge benefits from a medical factoring program.

- Hospitals

- Medical Centers

- Physicians: Both Specialists and General Practitioners

- Outpatient Clinics and Facilities

- Medical Staffing Services

- Medical Labs

- Dialysis Facilities

- Home Healthcare Providers

- Physical Therapy Clinics and Groups

- Rehabilitation Centers

- Medical Equipment Providers

- Medical Labs, and

- Many More

What Are the Benefits of Factoring Medical Receivables

The benefits to healthcare professionals are very similar to the benefits enjoyed by many businesses in many other industries. They include -

- Faster (almost immediate) payment;

- Increased percentage of billings collected;

- Consistent cash flow;

- Access to debt-free working capital;

- Stress-free outsourced accounting and collection; and

- Being able to improve your business credit.

Medical Practices Can Depend on Factoring for Reliable Cash Flow

Medical factoring is an excellent financing alternative for medical practices because practices receive consistent and flexible financing which is directly tied to their insurance claims. This means that the financing will increase as more claims are filed. It's highly desirable for all medical practices to achieve a scalable and reliable cash flow, thus ensuring sufficient liquid business capital to cover operating expenses.

And with medical supply companies the situation is very similar. Depending on the volume of sales these companies can achieve fast and predictable business financing by signing up for a medical factoring program. And, as sales continue to grow so does the amount of financing, providing the much-needed working capital required to both grow and maintain business operations.

Medical Receivables Factoring for Smaller Medical Offices

Medical factoring is especially beneficial for smaller medical offices. Office overheads and staffing expenses can be dramatically reduced because the factoring company will take control of the more tedious and time-consuming administrative work involved in collections and processing claims. This frees up remaining staff members to concentrate on delivering excellent medical care. If you're a small medical practice and you have good growth prospects but a slow cash flow, receivables factoring could well be the ideal tool to assist in financing the growth of your business. You'll find that many factoring companies have minimums, and there are factoring companies prepared to finance a medical office billing just $50,000 per month.

Explaining How Medical Factoring Works

In simple terms, if a healthcare business is dependent on third-party payors, those payments will be accelerated with medical factoring. Within just days of the initial billing, the majority of the amount billed will be deposited directly to the business's bank account. The instant rewards are a dramatic shortening of the collection cycle and the elimination of cash flow problems for the business concerned.

Importantly, receivables factoring is not a loan, so there are no credit or financial requirements; there will be no impact to your balance sheet and there are no arbitrary limits. Medical factoring is the ideal financing tool for business growth because you can factor as much billing as your business is capable of generating.

How Long before My Business Is Accepted for Factoring?

With medical factoring there are no lengthy delays, certainly not like when applying for bank finance! A medical factoring program will usually take around two weeks to set up. This timeframe allows the factor to determine the stability of the medical practice and to ensure the reliability of its third-party payors. Then, once a medical factoring program is in operation, the financing will be predictable and constant. Once claims have been submitted to the medical factoring company, claims are typically funded within 48 hours.

The process of medical factoring is very simple, as follows -

- Your medical practice periodically submits billings to Medicaid, Medicare, and insurance companies. At the same time, copies of these billings should be forwarded to your factor.

- Within 48 hours of receiving a copy of these billings, the factor will deposit an advance of up to 85% of net collectables into your bank account. The balance will be held by the factor until such time as the account has been paid in full.

- Once the factoring company has received payment in full, the balance of the billings - less the agreed-upon factoring fee - will be remitted to you.

Medical Factoring Fees

Medical factoring fees vary depending upon the size and types of claims generated by the medical practice. It's not known why medical factoring today is not as widely known as it is in other industries; however, interest in this type of financing is now becoming more popular and widespread as business owners are beginning to understand the many financial and other benefits of medical factoring.

Medical factoring in the healthcare industry is fast becoming a widely accepted tool to resolve shortfalls in working capital financing and as a long-term solution for patient accounting support and medical financing. It's certainly a tool that healthcare businesses should give careful consideration to because cash flow problems can stall growth and prosperity in businesses of all sizes and types.

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Benefits Of A Factoring Company Over A Traditional Bank Loan

Anyone who owns a business knows that there are times when the money goes out of your business much faster than it is coming in. This can put a company in a financial bind, making it difficult to purchase raw materials, pay their employees, or even keep the utilities on. The simple truth is that every company needs to have ready cash in order to keep their business running on an even keel and in order for it to grow. There are a number of different ways that a company can get the money they need to keep their business running and moving forward, but not all of these ways offer businesses the same freedom and benefits. This article will talk about two popular, but different types of financing available to business. The Traditional bank loan, and getting your financing through a factoring company.

Bank Loans

Bank loans are an extremely traditional way for a business to get financing. While these loans are handy they are not available to every business. For example, a fairly newly established business simply may not have the assets to readily get a loan from a bank, even if they do, the standard collateral for a business loan is the business itself, which means that if you cannot make your loan payment, you risk losing your entire business. In addition, while you apply for a certain loan amount, that is all the financing you are entitled to. Once the loan is paid off, you can then apply for another loan if the need arises.

Factoring Companies

Factoring companies do not give loans, and the money you get from the factoring company does not put you in debt. Rather the financing you receive from a factoring company is based on money your business has all ready earned, but have not yet received. Factoring companies actually purchase your account's receivable or at least part of them for a percentage of their total worth, Normally around 80%-95%. The amount of money you can receive is based on the amount of money you have earned and the accounts receivable you are willing to "sell." Once you have set up factoring account it continues as long as you wish it too and the amount of money available to you even can grow as your business grows, giving you the ready cash you need to meet your own obligations.

Benefits of a Factoring Company Vs. A Bank Loan

While not every business can take advantage of factoring account financing (you have to have a business that has account receivables) for those that can use this type of financing there are several distinct benefits.

1. You Won't Incur Debt. Since the factoring company actually buys your accounts receivable you don't actually incur debt like you do with a bank loan. This has many benefits including the fact, that this type of financing won't affect either your business credit rating or your personal credit rating. Should the unforeseeable happen and your business fails, you won't have to worry about anyone coming after your personal as well as your business assets to pay off a loan. With a bank loan, the debt goes onto your credit report, and even one late payment can adversely affect your businesses credit, and even the ability to get insurance and may even reflect upon your personal credit rating.

2. No Collateral Required. Another benefit of using a factoring company instead of a traditional loan is that you aren't required to provide collateral to the factoring company in order to secure financing, because the company "buys" the accounts receivables; not loans you money based on them. In addition, while the factoring company does run a credit check on your customers whose accounts receivables are offered for financing, the state of your credit is not an issue. This makes it easier for fledgling businesses to get the financing they need through a factoring company (as long as their accounts receivables are in good order) then from a bank, who may not feel that you have been in business long enough to be worth the risk of issuing you a loan.

3. Receive Your Money Faster. With a Factoring company you can actually get the money you need faster. Once the Factoring company assures itself that the customers in your accounts receivable are likely to pay their debt, the money is usually in the account within 24 hours. With a bank, there are vasts amounts of paperwork, then the loan has to be underwritten, which can take months before you actually see the loan if it is approved.

4. Interest is Paid Up Front. Unlike a bank loan that continues to build interest that you have to pay the entire time you have your business loan with a factoring company, you don't have to continue to pay interest as they take it right off the top, deducting it from the total amount of accounts receivable. So not only are you relieved of those monthly loan payments, but you also don't have to worry about the building up of interest, as every penny in the account is yours to spend on the business.

As you can see, there are several benefits that makes considering financing through a factoring company over a traditional bank worthwhile. However, there are also a couple of other benefits that a factory company can offer your business is far beyond the scope of the bank. The most important benefits is that once you sell your accounts receivable to the factory company, you don't have to take time away from running your business to collect the money owed from reluctant to pay customers. The factoring company takes over that chore, since it is now their money to collect. Factoring companies are very good at collecting these debts, saving you the time and effort that you need to devote to your growing company.

In addition, since the factoring company evaluates the credit quality of your customers prior to purchasing the accounts receivable you gain valuable information into which customers are likely to pay and which ones are not so likely to pay.

While a Factoring company is not the only way for your business to obtain the money it needs to keep growing, it does offer a type of financing well worth considering.

Memphis Factoring Companies Articles

Healthcare Staffing Factoring

The healthcare field is arguably one of the most rapidly growing industries in the United States. With the baby boomers, the largest section of our population, reaching retirement age the need for expanding healthcare services has never been more pronounced.

At the center of this growth are healthcare staffing agencies that hire for hospitals, clinics, doctor's offices and a wide range of medical facilities. However, while business is booming the ability for these staffing agencies to expand is inhibited by the customer invoice system. Fortunately, there are healthcare staffing factoring companies around to help them in their time of need.

We asked the owner of a local healthcare staffing agency, Joy Reed, to talk to us about how factoring companies helped expand her business and provide a much needed boost at a critical time for her company.

"Hello Joy and welcome. I was hoping you would tell us a little about how healthcare staffing factoring companies helped your business, but I suppose we should begin by how you got started in this business?"

Joy Reed (JR), "Thanks for having me. I actually have been a part of several start-up businesses in my recent career and was looking for a field that would show a lot of promise. It was pretty clear to me that medical staffing was a big need in the healthcare field so I set about to start my own business. I had experience in starting up businesses before, so I drew up a business plan, took out a loan, rented the offices and hired a staff to get started."

"So, you did what most people do in starting up a business. How did it do?"JR: "I actually got off to a pretty good start. I had made a few contacts and managed to get some business right away. This was really helpful because as you might know our clients use invoices for payments and it can take up to 90 days before we actually get the cash in hand. Around four months in we were facing a real crossroads as new opportunities opened up for our business, but we didn't have the cash on hand to take advantage."

"I'm a little confused. You say you were doing well, but you didn't have the ability to expand your business?"

JR: "That's right. The problem was back to the invoices that were making up wait up to 3 months before we had the cash. I really wanted to expand my staffing business to handle the new opportunities I was being presented, but I couldn't because I was still waiting on the invoices to finally turn to cash. So I was asking my accountant about what could be done when the suggestion of a healthcare staffing factoring company was introduced."

"Tell us a bit more about factoring companies."

JR: "Basically, factoring companies purchase the invoices right on the spot so you can have cash on hand immediately instead of waiting up to three months. For healthcare staffing factoring companies, they will then collect the money from the business when the invoice is read to be fully paid. It really worked out for me because I was able to get cash quickly to add new personnel and even expand my offices to include another section of the building I was renting in."

"I understand that factoring companies are there for many different kinds of businesses, including medical staffing. Was it difficult to get set up with a factoring company?"

JR: Actually, it was pretty easy once we found a company that met our needs. I just filled out a short form and they looked over a few of the invoices I had to see what companies that I worked with. It really didn't take long at all before they agreed to cash some of the invoices and I got the money I needed to expand."

"Could you tell me a little more about the advantages of using a factoring company like this?"

JR: "Sure, I was not only able to hire a couple of new people and rent additional space, I've been able to cash my invoices when unexpected bills come up or if I need to make a purchase quickly for a new piece of equipment. This has come in really handy recently when I decided to move to a new location and needed some cash on hand to make the transition. The factoring services are really quite good with reasonable rates and fast service."

"What's the differences in using factoring companies over getting a new loan?"

JR: "It is frankly much better than getting a loan because with factoring there is nothing to pay back. We are basically getting our own money from the invoices we've earned up front and paying only a small fee. With a loan, I would not only have to pay it back but with interest as well. Factoring for us has really been a godsend when it comes to making decisions about how to expand my business. I'm no longer tied down to waiting 2 to 3 months to get paid when I can take what my business has earned and get cash immediately."

"I take it that you are happy with how healthcare staffing factoring has worked out for you?"

JR: "You would be correct. I cannot imagine how my business would have expanded at that critical time without factoring companies to buy my invoices. This is a great service that has helped me in my time of need and now my medical staffing business is bigger than ever. I'd recommend factoring companies to anyone running a business that relies on invoices if they need to get cash quickly."

There is little doubt that Joy Reed has been quite happy about the services she received working with a factoring company. Perhaps factoring is right for you and your needs, be sure to search for the type of factoring business that works in your field so that you can get the right services in helping your company to succeed.

Memphis Factoring Companies Articles

The Advantages of Trucking Factoring for Trucking Companies

Around the country, many owners of small trucking companies are running into the same problems when trying to expand their business. While the trucking business can be quite lucrative, it can take many weeks or even months to finally get paid on hauling invoices. This puts trucking companies in a real bind by having to play catch-up while trying to pay bills and salaries of their drivers.

We caught up with Jason Kind, an owner of a small trucking business that he created just a few years ago. Like many trucking owners, Jason was trying to expand his company to meet the needs of his clients, but was running into money issues that were holding him back. We asked him about his situation, the challenges he faced and how Trucking factoring played a real role in helping his company to expand without being burdened by paying back high interest loans.

Jason, it's good to have you with us.

Jason Kind: "Thanks, I appreciate being here."

Tell me a little about your trucking company and how it got started.

JK: "I had been driving trucks for years when in 2011 I decided to start my own trucking business. I went through the loan process, purchased a couple of trucks and got started. At first, it was really exciting because I had made a few connections as a driver and I picked up some early business. It seemed like everything was starting to snowball as I was getting requests from other businesses, but I was running into a cash problem."

It seems rather strange that being successful was causing you to be short on cash?

JK: "I know. You see in the trucking business we charge invoices which means that it could take weeks or even months before the cash would roll in. A typical invoice takes anywhere from 45 to 60 days before the payment comes through. Here I was getting offers from other businesses and I didn't have the cash on hand to buy trucks and hire drivers."

So, what did you do?

JK: I'll admit I was at my wit's end because I thought by the time I had the cash to expand that the interest would dry up first. I didn't want to take out another loan because I would just be putting off that debt until later and I had nothing to sell or any additional way to make more money. It was around that time when I heard from one of my friends in the trucking business about Trucking factoring."

What exactly is Trucking factoring?

JK: "Well, Trucking factoring is a way for trucking companies like mine to get paid quickly for the loads we are hauling. Instead of having to wait weeks or even months sometimes to get paid for hauling, Trucking factoring lets us get money right away for the work that we've done."

How does Trucking factoring work?

JK: "Well, there are companies out there who are willing to purchase the invoices that trucking companies like mine get when we perform a job. I managed to find a good, reputable company that actually purchases the invoices we get after performing a job along with other bills that we charge in our business. In return, they pay us cash that I not only use to cover my payroll, fuel costs and expenses, but I was able to put back enough money to purchase another truck a lot more quickly than if I had simply waited for the invoices to be paid."

It seems like you stumbled on a pretty good deal when it comes to Trucking factoring. Are there any other benefits that you've enjoyed by using this service?

JK: You bet, because the invoices act as the means to pay the company. It is not a loan where I have to pay back any money. The Trucking factoring company simply takes a very small percentage off each invoice or bill as their fee and I get the rest in cash right away. It's really worked out for me because not only was I able to get the cash needed to expand my business I was able to pay off my original loan a lot more quickly as well.

In fact, I was able to leap onto new business offers more quickly because the Trucking factoring allowed me to start purchasing new trucks and hire drivers months before I could even consider doing that simply waiting on the invoices.

This Trucking factoring sounds almost too good to be true, surely there must be a catch somewhere?

JK: I'll admit, I was a little skeptical at first, but it's all pretty easy. The Trucking factoring company I use didn't even charge me a sign up fee nor did they sign me to any long term contract. I just took a few minutes with them to set everything up and when I turn in an invoice, they pay me cash right on the spot.

You said you didn't have to sign any long term contracts. Are there a minimum number of invoices or amounts that you have to turn in each month?

JK: Actually, no. When I first started with them I was turning in practically all of my invoices so I could generate some cash up front. Now, when I need some cash to pay off bills or make quick purchases, I go to the company with my invoices. Some months I've turned in quite a few invoices, other months not so much.

It really sounds like you found a great deal in Trucking factoring?

JK: You bet. I have even used their fuel advances and discount cards to help me save money which really helped out in the first year of my business. I've had other trucking owners call me up and ask me how I was able to expand my company as fast as I did. I tell them all the same thing, if you have invoices, then Trucking factoring is the way to get fast cash without having to take out loans or put yourself in a deeper hole.

Jason's business continues to grow and Trucking factoring was a big reason why he was able to expand so rapidly. If your trucking business is short of needed cash with invoices that have yet to be paid, then you should consider Trucking factoring as a way to put money into your hands right away.

Memphis Factoring Companies Articles

Oil Well Cleaning Owner Interview

The oilfield services industry is certainly a booming one these days thanks to a renewed emphasis on searching and drilling for oil on private and state properties. One of the more profitable ventures in this field is not the drilling for oil, but the cleaning of oil and gas wells to keep them operating at full efficiency. Oil and gas drilling is a dirty business and wells will quickly become clogged even with regular maintenance.

Jeffrey Fielding is the owner of an oil well cleaning company who works with several drilling companies in providing cleaning and maintenance of oil wells. Over the past couple of years, Jeffrey has managed to grow his business considerably thanks in large part to his perseverance and determination. However, things were really tight when Jeffrey first started up his company and at one point he was faced with a dilemma that he didn't know how to overcome.

The following interview with Jeffrey tells how he managed to expand his company at a crucial time thanks to oilfield services factoring. If it wasn't for the presence of factoring companies that worked in his field, Jeffrey might be in a completely different business today.

"Hello, Jeffrey. It's good to talk with you and I'm glad you were able to spare the time to share your story with us."

Jeffrey Fielding: "Thanks, I'm glad to be here."

"Jeffrey, tell us a little about how you got into the oil well cleaning business first as it's something our listeners may not be fully aware of."

JF: "No problem, I'll start at the beginning. About ten years ago I joined an oil well crew as a roughneck, working my way up through the business. It was hard work and our crew was usually out in the middle of nowhere, but the money was good and the opportunities kept building for me. I quickly learned the job and was hired by a number of drillers to work their rigs over the next few years during the boom in the oil industry."

"Right from the beginning, I took notice the oil well cleaning crews that would work each rig and started talking to the guys who were a part of that business. After a few years it became clear to me that oil well cleaning was really where it was at 'cause the work was really steady and the money was just as good, if not better than what I was making. So, with the money I had saved up along with a couple of partners I opened up an oil well cleaning company of my own."

"It certainly sounds like you struck gold so to speak. So tell us how your business started."

JF: "It was pretty easy as we got our business loan, purchased the equipment and hired a couple of experienced people to help us clean oil wells. We had some pretty good connections and the orders started to pile in, but then we ran into a problem that none of us could even dream of happening. We became victims of our own success."

"I don't think I quite understand, could you explain just how that happened?"

JF: "Sure, about six months in we suddenly got new drillers who wanted to use our services, but we didn't have the money to expand. We get paid by invoice which can take up to 60 days to see the cash which meant that we trying to pay down our loan, the payroll and the equipment, fuel and other costs and didn't have enough cash on hand to expand. We knew that if we didn't hire new people and buy new equipment that we would miss out on a golden opportunity. However, one of my friends told me about oilfield services factoring companies that could help us out."

"What are factoring companies?"

JF: "Basically, a factoring company will buy the invoice and get us the cash immediately. We had good credit and our invoices were certainly good as well. By using their services, we were able to get the cash in our hands quickly and pay for new equipment to then expand our business efforts."

"It certainly sounds like the factoring companies saved the day for you, but just how do they work?"

JF: "Well, it was a pretty simple process. We just filled out a few forms with the information that they requested and then we sold the invoices we had already collected, but had not collected to the factoring company. We got the cash we needed immediately and they collected the invoice."

"It certainly sounds pretty easy, but why didn't you just get another loan?"

JF: "My partners and I went over that and another loan would just be too big a burden. We were already paying off our old loan which was considerable and didn't want to have more debt hanging over our company. By going with the oilfield factoring companies, we didn't owe anyone, anything. We just collected the money that we were owed a lot more quickly."

"So, how is business now?"

JF: "It's better than ever. By using a factoring company I was able to buy new tubing, cleaning fluids, a new vehicle and other equipment that let us take on the new orders. We were able to expand the business quite a bit and our reputation is such that we work with several drilling companies."

"It sounds like a dream come true."

JF: "It really does, but I don't know what we would have done if factoring companies didn't exist. We still use them when we need cash for new equipment or products to do our job. It's quick, safe and brings us the money we need to continue our business."Jeffrey's company really benefitted from using oilfield factoring companies that served his industry. There are factoring companies for other types of businesses as well that can take invoices and turn them into quick cash for businesses that need to expand. For Jeffrey and many other small business owners, factoring companies can make the difference in the success of your efforts.

Memphis Factoring Companies Articles

Oilfield Services Factoring Services

Running a company in the oilfield services industry is no easy business, especially with payrolls to meet, equipment to purchase and deadlines that must be met. The sheer complexity of combining the geological research and modeling, imaging and exploration and finally the drilling to see whether oil is really present can take a lot of investment before any payoff can be seen.

For those who own a Frac Sand Hauler for example, the efforts that must be put in to start such as business can be considerable. But arguably the biggest challenge is paying the expenses as the invoices come in. A Frac Sand Hauler often has expenses that must be met immediately, but their invoices can take up to 60 days before they see the money.

What follows is an interview with Ray McClerand, a man who owns a Frac Sand Hauler business and ran into the same difficulties that many new companies of his type face. How Ray overcome some of the challenges in paying his bills through oil service factoring are explained in the interview.

"Welcome Ray, I'd like to know first why you decided to start up a Frac Sand Hauler company and how you prepared for the challenges it created."

Ray McClerand (RM): "I've been in the oil business for the past 15 years or so working on different jobs from roughneck to foreman to deskwork for different companies. A few years ago I saw the potential of having a Frac Sand Hauler business in this area and got together with a couple of partners to create a company. We sat down, went over the details and decided that this would be a real good time to build a business that was serving a particular need in this industry."

"So, I take it you created a business plan and took out the appropriate loans in order to purchase the equipment and hire the personnel necessary to get your company started?"

RM: "Exactly. Because I had been around this business for a while, I understood what was needed in terms of personnel and equipment. Plus, I had some contacts with others in the business that needed the type of services that a Frac Sand Hauler provides, so I felt that there was some real potential to make a profitable business work."

"How did it go over the first six months or so?"

RM: "At first, we were really thriving as my contacts had lined up some business my way. Our loans covered the first six months or so of operations and we were doing quite well with the business we had. My partners and I were certainly happy and everything was going good when something really strange happened."

"Could you elaborate on what you mean by "strange"?

RM: "Yes, after the first five months or so I started getting requests to have our company work with several other businesses in the area. This would mean having to expand our company through buying new equipment and hiring more people. But we did not have the cash on hand to make such a move. We were getting invoices from the businesses that we worked with, but it was taking up to 2 full months before we actually got the cash."

"So, you were making enough money to expand, but you didn't have it on hand because of the invoice system?"

RM: "You got it. Add to that our initial money from the loan was running out and we needed to start paying it back as well. I knew that if we didn't expand and accept the new business that others would step in and we would lose that money. So, we were in a real pickle until I heard about oil service factoring companies."

"Tell us a bit about oil service factoring and how it helped you out?"

RM: "Well, one of my partners had heard about factoring companies, so we checked it out and decided to go with one that was best suited for our needs. A factoring company buys our invoices with cash so we have money on hand to pay our bills and do what we need accomplished immediately. The factoring company then collects the money from the invoices when they become due. It's really been a win-win for what we do."

"That's interesting. I wonder if you could you explain a little further just how factoring has helped your company?"

RM: "Sure, instead of having to wait up to 60 days before we could collect on the invoices, we were able to have the cash on hand immediately to purchase some new equipment and hire some more people to expand our business. This meant that we could accept the new offers that other businesses were providing for us and not having to pass. I cannot say enough about how factoring really benefitted us when it came to expanding our business."

"So, it seems like factoring really paid off for you. Do you still use factoring today?"

RM: "Yes we do. Although for the most part we still cash our own invoices, whenever we need money quickly so we can buy some new equipment or expand our business a little further, we go back to the factoring company and cash in our upcoming invoices. It really has worked wonders for our company."

"Tell me, what would have happened if factoring was not an option?"

RM: Frankly, I don't know how we could be in the position we are today without factoring. In this business, you have to take advantage of new opportunities quickly because there are other companies out there who will step in if you don't. Basically, I don't think we would be anywhere near the company we are today if it had not been for factoring.

There is little doubt that Ray's company would not be where it was without oil service factoring that allowed him to expand his company when he needed. For those in the oil industry, having your invoices cashed immediately by factoring companies allows greater flexibility so you can grow your business a lot more quickly and take advantage of opportunities.